I am karta huf. My son(NRI), & MY Daughter (NRI) are co-Parceners. My wife was also a member, but has died recently. I am 79 years old & cannot hold for long. Can I make him KARTA right now? But being NRI , can he operate SB account? He as well as my daughter has NRO Account already.
2.can I distribute funds among members & close HUF account?
3.After I leave this world, what will become of this huf account?
1. Your son cannot become Karta right now as you are still alive. The change in Karta is based of death of the oldest member and taken over by the 2nd oldest member alive.
2. Yes he can operate SB ACCOUNT EVEN IF he is NRI. But the HUF will become non resident for tax purposes upon your death as the residential status of Karta determines the residential status of HUF
3. While you are still alive, you should go for complete partition of HUF. It is a tax friendly method to transfer the net assets of the HUF to the members
Regards
CA. Raj Doshi
R C D & Co.
www.rcdco.in
CAclubindia
